Central and Eastern Europe (CEE)

Akbank will widen the margin on its loan by 25bp if the bank is downgraded. The move is a condition the bank’s relationship lenders required after the attempted coup in Turkey on July 15. While Burgan Bank this week avoided a similar clause, other Turkish banks will likely have to accept them.

Last Friday, Turkey managed to cling on to its investment grade status after Moody’s left its credit rating on hold. But with selling pushing the sovereign wider than several countries with lower ratings, bankers and investors are questioning where the money has been moved to.

SME specialist Belarusky Narodny Bank (BNB) has signed $20m of loans from international lenders and the European Bank for Reconstruction and Development (EBRD).

Burgan Bank Turkey has signed a $150m one year loan which does not include a margin flex if the bank is downgraded. The signing comes as the country’s larger banks face increasing calls to write in such clauses in case of rating changes.

Akbank will widen the margin on its loan by 25bp if the bank is downgraded, a condition the bank’s relationship lenders called for after Turkey’s attempted coup on July 15. But two lenders said the step-up should be bigger.

CEEMEA primary markets have finally become a victim of the summer heat but there’s no snoozing on the beach for syndicate bankers. Planning for the second half of the year has already started in earnest.

A third Turkish bank has returned to the MTN market, joining Vakifbank and Yapi Kredi with a short dated private placement as prices approach the levels they held before the failed military coup on July 15.

Standard & Poor’s upgraded Novolipetsk Steel (NLMK) and Severstal to one notch above the Russian sovereign rating at the end of last week, prompting a rally in their bonds as investment grade funds became able to buy the notes.

Turkey on Friday managed to cling on to its investment grade status after Moody’s left its credit rating on hold.

Export credit agency Turk Eximbank has signed a $750m 10 year loan from international lenders, having secured a €400m deal just last month.

A pair of Turkish banks has returned to the MTN market after a 100bp rally in their secondary levels, marking the first bonds since the failed military coup in Turkey on July 15 and bringing hope that by September, public syndicated bonds may be back on the table.

Indian Oil Corp has awarded two banks the bid for a $300m bridge loan to support the acquisition of stakes in Russian oilfields.